The "Republic of the Equator" was one of three countries that emerged from the collapse of Gran Colombia in 1830 (the others being Colombia and Venezuela). Between 1904 and 1942, Ecuador lost territories in a series of conflicts with its neighbors. A border war with Peru that flared in 1995 was resolved in 1999.

based on civil law system; has not accepted compulsory ICJ jurisdiction

Suffrage:

18 years of age; universal, compulsory for literate persons ages 18-65, optional for other eligible voters

Executive branch:

chief of state: President Lucio GUTIERREZ (since 15 January 2003); Vice President Alfredo PALACIO (since 15 January 2003); note - the president is both the chief of state and head of government
head of government: President Lucio GUTIERREZ (since 15 January 2003); Vice President Alfredo PALACIO (since 15 January 2003); note - the president is both the chief of state and head of government
cabinet: Cabinet appointed by the president
elections: the president and vice president are elected on the same ticket by popular vote for four-year term (no reelection); election last held 20 October 2002; runoff election held 24 November 2002 (next to be held NA October 2006)
election results: results of the 24 November 2002 runoff election - Lucio GUTIERREZ elected president; percent of vote - Lucio GUTIERREZ 54.3%; Alvaro NOBOA 45.7%

Legislative branch:

unicameral National Congress or Congreso Nacional (100 seats; members are popularly elected by province to serve four-year terms)
elections: last held 20 October 2002 (next to be held NA October 2006)
election results: percent of vote by party - NA; seats by party - PSC 25, PRE 15, ID 16, PRIAN 10, PSP 9, Pachakutik Movement 6, MPD 5, DP 4, PS-FA 3, independents 7; note - defections by members of National Congress are commonplace, resulting in frequent changes in the numbers of seats held by the various parties

Judicial branch:

Supreme Court or Corte Suprema (new justices are elected by the full Supreme Court)

three horizontal bands of yellow (top, double width), blue, and red with the coat of arms superimposed at the center of the flag; similar to the flag of Colombia, which is shorter and does not bear a coat of arms

Ecuador has substantial petroleum resources, which have accounted for 40% of the country's export earnings and one-fourth of public sector revenues in recent years. Consequently, fluctuations in world market prices can have a substantial domestic impact. In the late 1990s, Ecuador suffered its worst economic crisis, with natural disasters and sharp declines in world petroleum prices driving Ecuador's economy into free fall in 1999. Real GDP contracted by more than 6%, with poverty worsening significantly. The banking system also collapsed, and Ecuador defaulted on its external debt later that year. The currency depreciated by some 70% in 1999, and, on the brink of hyperinflation, the MAHAUD government announced it would dollarize the economy. A coup, however, ousted MAHAUD from office in January 2000, and after a short-lived junta failed to garner military support, Vice President Gustavo NOBOA took over the presidency. In March 2000, Congress approved a series of structural reforms that also provided the framework for the adoption of the US dollar as legal tender. Dollarization stabilized the economy, and growth returned to its pre-crisis levels in the years that followed. Under the administration of Lucio GUTIERREZ, who took office in January 2003, Ecuador benefited from higher world petroleum prices, but the government has made little progress on fiscal reforms and reforms of state-owned enterprises necessary to reduce Ecuador's vulnerability to petroleum price swings and financial crises.

the continuing civil disorder in Colombia has created a serious refugee crisis in neighboring states, especially Ecuador

Illicit drugs:

significant transit country for cocaine originating in Colombia and Peru; importer of precursor chemicals used in production of illicit narcotics; attractive location for cash-placement by drug traffickers laundering money because of dollarization and weak anti-money-laundering regime, especially vulnerable along the border with Colombia; increased activity on the northern frontier by trafficking groups and Colombian insurgents